NEW YORK, Sept 22 (Reuters) - U.S. crude oil futures rose on Tuesday as the dollar weakened, oil markets awaited this week's inventory reports and as the front-month October crude oil contract approached expiration. "After two days of rebounding, the U.S. dollar reversed, making another new low for the year. Technically supportive was the fact that crude managed to hold trendline support at yesterday's low," said Tom Bentz, analyst at BNP Paribas Commodity Futures Inc in New York. The euro hit a one-year high against a sliding dollar on Tuesday as dealers resumed selling the greenback and markets awaited a Federal Reserve policy decision and Group of 20 summit later in the week. [USD/] World stocks climbed on Tuesday ahead of the Federal Reserve's two-day policy meeting. [MKTS/GLOB] Wall Street edged higher. [.N] "The only thing that's holding the crude oil futures market up is the lower dollar, which has in turn propped up the stock market. Otherwise, crude futures prices shouldn't be where they are, given the bearish fundamentals," said Mark Waggoner, president at Excel Futures in Huntington Beach, California. High oil inventories, especially refined products supplies that have continued to rise, have helped shrink crack spreads (profit margins), with both RBOB gasoline and heating oil spreads ending below $4 a barrel on Monday. The contango in the crude market also has shrunk, with November crude's premium over October at around 15 to 20 cents on Tuesday just after midday. The November/December spread was only around 40 cents. PRICES * On the New York Mercantile Exchange at 12:38 p.m EDT (1638 GMT), expiring October crude CLV9 was up $1.89, or 2.71 percent, at $71.60 a barrel, trading from $69.61 to $71.70. * NYMEX November crude CLX9 rose $1.64 or 2.35 percent, to $71.57 a barrel, trading from $69.74 to $71.97. * In London, November Brent crude LCOX9 rose $1.78, or 2.59 percent, to $70.47 a barrel, trading from $68.82 to $70.60. * NYMEX October RBOB RBV9 rose 5.98 cents, or 3.41 percent, to $1.8115 a gallon, trading from $1.7515 to $1.7995. * NYMEX October heating oil HOV9 rose 5.76 cents, or 3.29 percent, to $1.8093 a gallon, trading from $1.7548 to $1.8119. * The October/October RBOB crack spread <0#RB-CL=R> was at $3.41, after ending at $3.85 on Monday. The October/October heating oil crack spread <0#CL-HO=R> was at $4.37, after ending at $3.86 on Monday. * The spread between the current front month and the five-year forward crude contract CLc61 was at $11.42, based on the October 2014 contract Monday settlement at $83.02. The spread ended Monday at $13.31. TECHNICALS NYMEX crude 10-day/20-day moving average: $70.99/$70.58 Technical support/resistance: NYMEX crude: $69.20/$71.40 NYMEX heating oil: $1.7250/$1.7995 NYMEX RBOB: $1.7260/$1.8060 For a full report on technicals, click on [ID:nLM258491] MARKET NEWS * A preliminary Reuters poll on Monday yielded a forecast for U.S. crude oil supplies to be down 1.1 million barrels in the week to Sept. 18. Distillate and gasoline stocks were expected to have risen. [EIA/S] * China's apparent oil demand rose 2.9 percent in August from a year earlier. [ID:nPEK245637] * China's apparent copper demand fell 13.9 percent in August from July. [ID:nSP505960] * OPEC does not need to cut output next year, Saudi Arabia's oil minister told Reuters on Tuesday.

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